The credit is automatically calculated, but I was wondering if it's possible that Turbo Tax miscalculated the "Double-taxed income" amount after completing the nonresident return?
The "Tax Paid" amount it transferred over was correct, however the Double-taxed Income amount it transferred over seems odd, and I wonder if I need to correct it.
It's an amount that's not "Total 5% income" nor "Taxable 5% income" from the Summary of Taxes (MA non-resident, I am NJ full-year resident).
Instead. when I preview the PDF of my taxes, I see that that the amount Turbo Tax automatically calculated as Double-taxed Income is from Line 3 from 2023 Schedule NTS-L-NRPY, which was Total 5.0% Income minus an Adjustment to income (which was Line 10 of 2023 Schedule Y ---> Student Loan Interest).
I was under the impression that Double-taxed income was supposed to be the "Taxable 5% income" amount?
Since each state has their own rules, the income from the nonresident state is often adjusted for the resident state rules.
You get credit for the lower state tax on the lowest taxable amount.
I guess my question is, did Turbo Tax make a mistake when it auto calculated my double-taxed income ... and should I edit it?
When I go through Tax Tools and view the Tax Summary of my MA return, I see info for
I know how Total 5% Exemptions was calculated. And I know how Total 5% Deductions was calculated.
Total 5% Deductions consisted of:
The double-tax income Turbo Tax calculated was simply MA Wages - Student Loan Interest (just Student Loan Interest, not Undergraduate Student Loan Interest)
I can see on my Form 1-NR-PY through lines 12-25 :
Should Double-Taxed Income actually just be the Taxable 5% Income OR Total 5% Income (which was MA wages)?
Did Turbo Tax make a mistake?